Derived from the increase in rooms on digital lodging platforms and in response to the recent alliance between Airbnb and the Government of Mexico City, the capital’s hotel sector unveiled a series of proposals to regulate this sector, which include limiting the number of registration certificates, a net amount of income and having civil liability insurance.
At a press conference, the president of the Association of Hotels and Motels of Mexico CityRafael García González, explained that as a private sector they have identified that it is necessary to generate a better level of competition between the hotel sector and Airbnb-type hosting platforms.
The request obeys both issues of economic recovery, such as security and promotion of the destination; added to the fact that it seeks to avoid the increase in the cost of real estate in the city and the departure of settlers to the peripheries.
According to the business leader, to operate each hotelier in Mexico City faces an average of 170 procedures that must be carried out before 11 dependencies and the process can last up to a year, while a provider of these platforms registers in 45 minutes.
“We are seeing that in places where hotels cannot be built, they are building complete rental buildings. Both the downtown area and Polanco, Roma, Condesa are already being vacated. We are seeing a growing phenomenon coupled with the pandemic, which came to arouse more interest in this investment sector and the problem is also that many people are being evicted from their homes, people who paid a rent of 5,000 or 10,000 pesos has tripled and they tend to go to other places, causing a strong problem for the settlers,” he explained.
The director of the Center for Research and Tourism Competitiveness of the Anahuac University (Cicotur), Francisco Madrid, pointed out that they have identified that due to the facilities that have been given to this sector, its average annual growth rate is close to 58%, while than the hotels of 0.7 percent.
It was also identified that in the city there are 715 owners who own more than 4 properties focused on Airbnb, while 1,134 own around 3, 2,367 of 2 or more, while 203 of one.
In addition, it is estimated that this sector closes the year with a economic flow for 150 million dollars.
The president of the Mexican Association of Hotels and MotelsJuan José Fernández Carrillo, informed that there are eleven proposals that are being presented to the authorities, at the mayoral, state and federal levels.
The first focuses on the fact that the Ministry of Tourism Grant a registry to be able to control the number of establishments that can be uploaded to any platform, imposing penalties on those who advertise without registration.
The second proposal is that it may only be possible to grant one registration per natural person, third, there may not be establishments that are registered in the name of companies.
The fourth point deals with the approval of the condominiums to access the registry; Fifth, the Ministry of Tourism must also limit the number of IDs so as not to cannibalize the organized hotel industry.
The sixth point is that this type of accommodation must pay the government a net amount of income, 10% is suggested, while the seventh proposal must ensure that they pay VAT, ISH and ISR.
The eighth point is that they must have civil liability insurance, since all providers in the tourism sector are required to do so, while the ninth focuses on compliance with civil protection regulations.
The tenth point seeks that the tax authority set fines, while for the last one only establishments in the name of natural persons can be uploaded to the platform.
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